AIG Agrees To Pay Oregon $8 Million
STEVE INSKEEP, host:
Among the victims of AIG's risky investments was the state of Oregon's pension fund. Now, AIG will pay the state about $8 million to settle a lawsuit.
Kristian Foden-Vencil of Oregon Public Broadcasting reports.
KRISTIAN FODEN-VENCIL: AIG admitted no guilt as part of the settlement and says it's pleased to have resolved the case.
But James Sinks, with the Oregon Treasurer's office, says the company was up to all kinds of skullduggery.
JAMES SINKS (Spokesman, Oregon Treasurer's office): They failed to report, as part of their regular disclosures, some of the things that they were doing in terms with credit default swaps.
FODEN-VENCIL: Sinks says Oregon lost about $15 million dollars - but the case was as much about sending a message.
Mr. SINKS: If you are considering not reporting adequately what's happening, you could get in trouble and we may sue you.
FODEN-VENCIL: So that's all well and good for state employees and their pensions, although they still don't have the money we all paid in taxes to keep AIG alive. The insurer says it's focused on paying that money back, but what about individual investors?
Portland financial lawyer, Rick Yugler, says basically they're out of luck.
Mr. RICK YUGLER (Financial Attorney): The complexity of the case, the amount of documents that need to be reviewed, the experts you need to hire, make it economically impossible for an individual investor to successfully pursue.
FODEN-VENCIL: Your best hope, he says, is to join a class action lawsuit. And there are such suits around, in states like Ohio. But unless you moved fast when things started going catawampus, the sign-up deadlines are well and truly past.��
For NPR News, I'm Kristian Foden-Vencil in Portland.
Support Oregon Public Broadcasting
Stories like these are made possible by contributions from readers and listeners like you.